Vantage Drilling Company Reports First Quarter 2014 Results
HOUSTON, TX--(MARKET WIRE)-May 6, 2014 -- Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for the three months ended March 31, 2014 of $24.8 million or $0.07 per diluted share as compared to a net loss of $24.9 million or ($0.08) per diluted share excluding approximately $98.3 million of charges for the early retirement of debt, for the three months ended March, 31, 2013. Including the charges for the early retirement of debt for the three months ended March 31, 2013, the Company reported a net loss of $123.2 million or ($0.41) per diluted share.
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased to announce another strong quarter of operating results. We also made good initial progress on our debt reduction plan, paying down almost $30 million during the quarter and we remain on track to reach our goal for 2014 given our contracted backlog and high operating efficiency across the fleet."
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, thePlatinum Explorer, theTitanium Explorer and theTungsten Explorer, as well as an additional ultra-deepwater drillship, theCobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
Vantage Drilling Company | ||||
Consolidated Statement of Operations | ||||
(In thousands, except per share amounts) | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2014 | 2013 | |||
Revenues | ||||
Contract drilling services | $ 214,932 | $ 134,664 | ||
Management fees | 4,582 | 3,198 | ||
Reimbursables | 12,951 | 9,139 | ||
Total revenues | 232,465 | 147,001 | ||
Operating costs and expenses | ||||
Operating costs | 101,722 | 75,317 | ||
General and administrative | 8,115 | 7,427 | ||
Depreciation | 31,625 | 24,861 | ||
Total operating costs and expenses | 141,462 | 107,605 | ||
Income from operations | 91,003 | 39,396 | ||
Other income (expense) | ||||
Interest income | 13 | 96 | ||
Interest expense and other financing charges | (54,487) | (59,662) | ||
Loss on debt extinguishment | (106) | (98,327) | ||
Other, net | 779 | 901 | ||
Total other income (expense) | (53,801) | (156,992) | ||
Income (loss) before income taxes | 37,202 | (117,596) | ||
Income tax provision | 12,378 | 5,605 | ||
Net income (loss) | $ 24,824 | $ (123,201) | ||
| ||||
Earnings (loss) per share | ||||
Basic | $ 0.08 | $ (0.41) | ||
Diluted | $ 0.07 | $ (0.41) | ||
Vantage Drilling Company | ||||
Supplemental Operating Data | ||||
(Unaudited, in thousands, except percentages) | ||||
Three Months Ended March 31, | ||||
2014 | 2013 | |||
Operating costs and expenses | ||||
Jackups | $ 23,760 | $ 21,845 | ||
Deepwater | 55,810 | 36,723 | ||
Operations support | 10,759 | 7,984 | ||
Reimbursables | 11,393 | 8,765 | ||
$ 101,722 | $ 75,317 | |||
Utilization | ||||
Jackups | 100.0% | 98.4% | ||
Deepwater | 96.5% | 88.5% | ||
Vantage Drilling Company | ||||
Consolidated Balance Sheet | ||||
(In thousands, except par value information) | ||||
March 31, | December 31, | |||
(Unaudited) | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 65,261 | $ 54,686 | ||
Restricted cash | - | 2,125 | ||
Trade receivables | 216,639 | 168,654 | ||
Inventory | 58,875 | 55,804 | ||
Prepaid expenses and other current assets | 20,456 | 23,717 | ||
Total current assets | 361,231 | 304,986 | ||
Property and equipment | ||||
Property and equipment | 3,482,799 | 3,472,407 | ||
Accumulated depreciation | (313,334) | (281,759) | ||
Property and equipment, net | 3,169,465 | 3,190,648 | ||
Other assets | ||||
Investment in joint venture | 32,374 | 32,482 | ||
Other assets | 96,018 | 100,027 | ||
Total other assets | 128,392 | 132,509 | ||
Total assets | $ 3,659,088 | $ 3,628,143 | ||
| ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 62,906 | $ 66,860 | ||
Accrued liabilities | 133,245 | 97,481 | ||
Current maturities of long-term debt and revolving credit agreement | 53,500 | 63,500 | ||
Total current liabilities | 249,651 | 227,841 | ||
Long-term debt, net of discount of $36,486 and $39,325 | 2,835,514 | 2,852,050 | ||
Other long-term liabilities | 41,502 | 42,796 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding | - | - | ||
Ordinary shares, $0.001 par value, 500,000 shares authorized; 305,997 and 304,101 shares issued and outstanding | 306 | 304 | ||
Additional paid-in capital | 899,067 | 896,928 | ||
Accumulated deficit | (366,952) | (391,776) | ||
Total shareholders' equity | 532,421 | 505,456 | ||
Total liabilities and shareholders' equity | $ 3,659,088 | $ 3,628,143 | ||
Vantage Drilling Company | ||||
Consolidated Statement of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended March 31, | ||||
2014 | 2013 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ 24,824 | $ (123,201) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation expense | 31,625 | 24,861 | ||
Amortization of debt financing costs | 2,964 | 3,995 | ||
Amortization of debt discount (premium) | 2,839 | (97) | ||
Non-cash loss on debt extinguishment | 106 | 6,070 | ||
Share-based compensation expense | 2,141 | 2,069 | ||
Deferred income tax expense (benefit) | (57) | 778 | ||
Equity in loss of joint venture | 108 | 133 | ||
Loss on disposal of assets | 104 | 1 | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | 2,125 | - | ||
Trade receivables | (47,985) | 17,521 | ||
Inventory | (3,071) | (4,319) | ||
Prepaid expenses and other current assets | 3,318 | 3,963 | ||
Other assets | 1,021 | 290 | ||
Accounts payable | (3,954) | (9,713) | ||
Accrued liabilities and other long-term liabilities | 33,296 | (42,762) | ||
Net cash provided by (used in) operating activities | 49,404 | (120,411) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to property and equipment | (9,371) | (15,135) | ||
Proceeds from sale of property and equipment | - | 2 | ||
Net cash used in investing activities | (9,371) | (15,133) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of senior secured notes, net | - | 775,000 | ||
Proceeds from issuance of term loan, net | - | 344,750 | ||
Repayment of long-term debt | (19,374) | (1,006,249) | ||
Proceeds from or (repayment of) revolving credit agreement, net | (10,000) | - | ||
Debt issuance costs | (84) | (23,683) | ||
Net cash provided by (used in) financing activities | (29,458) | 89,818 | ||
Net increase (decrease) in cash and cash equivalents | 10,575 | (45,726) | ||
Cash and cash equivalents-beginning of period | 54,686 | 502,726 | ||
Cash and cash equivalents-end of period | $ 65,261 | $ 457,000 | ||